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AUD/USD Weak Bounce after Trendline Break

By , Sr. Technical Strategist
08 May 2013 20:00 GMT

Daily Bars

eliottWaves_aud-usd_body_audusd.png, AUD/USD Weak Bounce after Trendline Break

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote yesterday that “the AUDUSD has broken the trendline that extends off of the 2012 and 2013 lows. Strength into 1.0208/20 would present an opportunity to short with a stop above the high of the breakout day (Tuesday) of 1.0253 for a break below 1.0114 and potential extension much lower. A break below 1.0114 and extension equal to the size of the 1.0114-1.0624 range yields a target of .9569 (close to the 2012 low). Levels of interest before then are Fibonacci confluences at .9980 and .9800.” The shallow bounce into 1.0207 portends a weak market and suggests the next bear leg is sooner rather than later. Chinese price data and Australian employment figures are released tonight.

FOREXTrading Strategy: Was triggered short at 1.0205, stop is 1.0260, targets .9980 and open

LEVELS: .9979 1.0115 1.0154 1.0208 1.0253 1.0322

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08 May 2013 20:00 GMT